Baytex Energy becomes latest Canadian producer to cut 2015 spending

CALGARY, Alberta Dec 9 (Reuters) - Baytex Energy Corp
became the latest Canadian oil producer to slash its
capital budget and dividend on Tuesday, as industry players
braced for even more companies to scale back spending.

Oil sands producer Baytex, which also operates in the Eagle
Ford shale play in Texas, said it will spend C$575 to C$650
million in 2015, 30 percent less than originally expected, and
reduce monthly dividend payments to 10 cents per share from 24
cents.

Approximately 75 percent of capital spending will be
invested in Eagle Ford assets, acquired earlier this year at a
hefty premium.

"Given the recent collapse in world oil prices, we believe
our 2015 budget strikes the right balance between preserving our
operational momentum in delivering organic production growth and
managing our dividends prudently to maintain strong levels of
financial liquidity," said Baytex Chief Executive James Bowzer.

Baytex's moves mirror tighter budgets announced by other
companies headquartered in Canada's oil capital Calgary as
global oil prices nosedive. Benchmark U.S. crude last
traded at $63.76 a barrel, down from $107 a barrel in June.

Precision Drilling Corp said it expected 2015
capital spending to be 44 percent lower than this year, and last
week Canadian Oil Sands Ltd, the largest owner of the
Syncrude Canada Ltd oil sands project, reduced its quarterly
dividend by 43 percent and capital budget by nearly half.

Michael Gosselin, head of investment banking in energy and
commodities Canada for BNP Paribas, said hefty spending
reductions should be expected given the extent of the oil price
slide.
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